virginia, steve centanni. fox news. we salute all those have served to keep america safe. thank you to your families, your service, and your sacrifice and for being fair, balanced and unafraid. >> shepard: this is the fox report. tonight, the affair that brought down the general. the investigations begin and the questions mount about david petraeus. his mistress and their emails. thousands of emails. did his secret lover have access to national secrets? tonight, what she told people about the attack on our embassy in benghazi. and why the cia insists she doesn't know what she is talking about. plus, two weeks after super storm sandy, tens of thousands of americans are still in the dark.

>> how long is it going to take to get our electricity back? >> i am very unhappy. [chanting] >> we certainly understand the frustration that's out there. [chanting] >> more trucks, more trucks. >> shepard: tonight, how long before the lights come back? and volunteers from louisiana bringing supplies to the northeast. pay back for all the help they got after hurricane katrina. >> we wanted to reach out and help them like some people helped us. >> shepard: tonight, all aboard the train of hope. but first from fox this monday night, pillow talk and national security. fox news confirms or has confirmed that the cia found classified documents on the computer that belongs to paula broadwell. she is the woman who had an affair with the then cia david petraeus. there is nothing to indicate that these documents actually came from general petraeus himself. the general stepped down as the cia director last friday

but questions remain about whether his once secret lover knew information she should not have known. prince, consider paula broadwell's comments during a speech in denver last month during which she spoke about the attack on our consulate in benghazi, libya. >> i don't know if a lot of you heard this but the cia annex had actually taken a couple of libyan militia members prisoner they think the attack on the consulate was to try to get these prisoners back. it's still being vetted. >> shepard: the cia spokesperson today said that did not happen. any suggestion that the agency is still in the detention business is uninformed and baseless. we're also now learning when this whole scandal began. this morning, a former top aide said the actual affair started last year. just two months after general petraeus became the director of the cia. that aide also said petraeus is now devastated. then there is his wife, holly petraeus. the aide tells abc good

morning america that when it comes to her state of mind, furious would be an understatement. jennifer griffin on fox top story live at the pentagon for us this evening. jennifer, the fbi interviews the mistress for what i'm told is the second time earlier this month. and determined nobody committed any crimes here. >> right, but there are still some questions, shep, especially about why paula broadwell mentioned at that october 26th speech that she gave in denver, colorado, in which she told the audience that one of the motivations of the benghazi attacks may have been that the cia was holding libya militia men prisoner. the question did she learn that from general petraeus, because sources confirmed to fox that the report may be true. the prisoners are being looked at as a motivating factor for those attackers at the consulate and annex. >> shepard: jennifer, jen petraeus is also now talking about some emails sent anonymously said to be by his mistress to another woman.

>> well, this is what really started this whole investigation by the fbi. there were emails, anonymous emails that were sent. they were harassing emails to a friend of the petraeus family, jill kelly. she has been -- she and her husband have been friends with the family for some time. she has spent holidays with both holly and david petraeus. she lives down in tamp parks florida. and those emails were traced to several dummy accounts set up by paula broadwell. that's how the affair was purportedly how it came out and how the fbi came to know about it and they were concerned that general petraeus may have been in some sort of blackmailable position. but they have now closed the case. >> blackmailable position. that's the key. now the defense secretary leon panetta is speaking out on all of this. >> that's right. is he traveling with reporters to australia. right now and on that flight he issued the first statement about the scandal. he said, quote: first, obviously, it was a very sad

situation to have a distinguished career like that end in this manner. and my heart, obviously, goes out to him and his family. but i think he took the right step and i think it's important you're director with the cia with all the challenges that face you in that position that personal integrity comes first and foremost. panetta added as a former member of congress he thought that they needed to look into why the intelligence committees have not been given more oversight over these issues related to the cia right now. >> shepard: jennifer griffin at the pentagon tonight. thanks. some top members of congress are now saying investigators should have told them about the petraeus scandal and told them a long time ago. now they are demanding to know why the feds cut them out of the loop. that important part of the story is coming up inside fox report just minutes from now. the feds report some 88,000 customers are still without power. a full two weeks after super storm sandy battered us in the northeast. keep in mind, that's not 8,000 people. many more, in fact, because in

some cases a customer is an entire apartment building and all of its occupants. and a lot of those folks also have no heat and no hot water. the vast majority of those who do not have electricity are in new york and new jersey. and as you probably know, many of those people say they are furious with power companies for what they say has been a slow poorly managed response. >> they don't give a rats tail about us. and that's unfair because we pay our bills just like everybody else. >> how long is it going to take to get our electricity back? there is elderly people that live here. there is sick people that live here. god forbid, is it going to take somebody to die from living in their house and it's so cold? we need help? we need our power back. towns that have been more devastated than this want our pack back. we want our power back. >> shepard: utility companies are not the only problem. serious dang to electrical panels and wiring. that means inspectors have to check out each and every one to determine whether each is

safe for juice. and that could take weeks, if not months. at the same time, the new york governor andrew cuomo will reportedly ask the feds for $30 billion in aid money to help pay for all the damage. that's according to a state official speaking to the associated press. and it would reportedly cover such things as repairs and emergency costs as well as to update infrastructure that the storm damaged such as commuter lines and tunnels. "the fox report's" chief correspondent jonathan hunt is hard hit in the rock away section in queens, new york. recovery is slow-going where you are? >> it certainly is, shep. there is a long hard road ahead for so many people in this, the bell harbor neighborhood of the rock aways. they say they are not being hnd by a lack of action from state and local officials since so many people

but, in this region of new york, the rock aways, some 29,000 remain without power tonight. that is partly a question of simply not having enough crews. that is why the long island authority has brought in crews from as far as away as phoenix, arizona. we saw them here all day today. there is simply a question of safety. and they cannot get in to some of the homes in this neighborhood to check whether it is safe enough to turn the electricity back on. shep? >> shepard: jonathan, how are the people who are there getting very basic necessities? >> well, they say they are not getting a lot of help on the local and state level. officially speaking, but just around the corner from where we are right now, there is a church that has set up a huge distribution center. providing medical help, providing food, and providing

clothing. we caught up with mary white, who was busy picking out clothes for her grandchildren because she had lost everything. one of her grandchildren got something else that was even more important to him. listen. >> [inaudible] >> new toy. he lost all his toys and his books. somebody gave him a new book bag because he lost his book bag and he was concerned about that because he likes to read. it's coming together piece by piece. and we are thankful. >> now, it's interesting, shep, that you don't hear a lot of outright anger expressed here in bell harbor. more a sense of weary frulings and a -- frustration and realization that the best road to refer here is simply neighbor helping neighbor, something that these homes may have been destroyed, shep, but the spirit of the people here certainly has not been. shep? >> shepard: great to he sue. jonathan hunt, thanks so much. across the river in new jersey, scheduled to end gasoline rationing at 6:00

tomorrow morning. governor chris christie imposed that ration back on november the 3rd. drivers are even-numbered license plates have been able to get gas only on even numbered dates and visa versa with folks with odd number licensed place. still no word on when new jersey's ration might end. new york staten island some residents say that the storm has attracted gawkers and on top of all the heartache and despair they say they now feel like they live in some sort of zoo. that's ahead. also, president obama and congress have less than two months to prevent a new year's day tax hike and keep us all from going over the fiscal cliff. they failed to cut a deal last year. that's how we got into this mess. now we are hearing the president may handle these negotiations a little bit differently. and one city votes to go meatless on mondays. we'll find out what that means for people who are trying to get a burger anyway.

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>> shepard: seven weeks from now taxes go up and the country plunges off the so-called fiscal cliff unless the white house and the congress do something about it. the combination of tax hikes and spending cuts set to kick in at the end of the year could cause another recession in our country president obama plans to meet with congressional parties later this week to try to cut a deal. wendell goler is he at the white house for us. we are hearing the president plans to do something differently this time after talks fell apart last year instead of late nights in the can net room. he will will meet with civic leads on friday to try to get him on his side. he and house speaker john boehner were close to a deal last year and people chose his way last week tuesday weigh

found out that the majority of people agree with my approach. democrats, independence and some republicans. now we need a majority in congress to listen. >> mitch mcconnell didn't give mr. obama a mandate. they just gave him more time' and speaker boehner still objects to higher tax rates, shepard. >> shepard: republicans here and there are changing their tunes on a lot of things. bill kristol the conservative commentator is one of them, he says raise taxes on the millionaires it won't kill us that shook the g.o.p. establishment. he supports the president's own deficit reduction commission taxes and spending cuts which mr. obama himself turned down. crystal's comments came on "fox news sunday." >> you know what? it won't kill the country if we raise taxes a little bit on millionaires. it really won't. i don't understand why republicans don't take obama's offers to freeze taxes on

everybody below 250,000. >> since polls indicate most people favor phasing out he upper income tax cuts. kristol ask why should republicans fall on swords for a bunch of millionaires who half of them live in hollywood and vote democratic anyway. two states have responded to make it legal to smoke marijuana and get high. world leaders have questions. for starters is it time to change drug policies. voters in colorado and washington state decided to legalize recreational recreational marijuana or marijuana for recreational use. presidents from hun dues costa rica are asking how that will effect them. the drug has left tens of thousands of people dead. mexico one of the primary suppliers of weed to the united states it's president calling for studies on drug laws. the implication enforce bans

on marijuana production and smuggling. in california officials have just endorsed something called meatless monday campaign that urges people to give up meat one day a week. city council endorsed unanimous vote. it ♪ an actual law. so thankfully the cops won't start a arresting for meat eating. the goal is to get people to cut back on it for health and environmental reasons. eating less meat can reduce the risk of heart disease, diabetes and, well, animal cruelty. the bloody civil war in syria taking explosive new twist. the israeli military returning fire from syrian mortar attack. latest from jerusalem on this monday after veterans day when communities and businesses pause to reflect on the sacrifices of those who serve. [ male announcer ] when this hotel added aflac

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>> shepard: the civil war in syria has now spread for whoever brief a time to israel, america's closest ally in the middle east. israeli military leaders say they scored a direct hit on a army vehicle after syrian mortar landed in israeli military. israeli commander fired a warning shot yesterday after the first shell landed near an israeli military post in the golan heights. that's the first time they fired into syria in almost 40 years. they suspect this is a one-time thing and that the message will be clear from israel they go on to say this could be the start of something more dangerous.

leland leland vittert back from the border live in jerusalem this evening. leland. >> shep, the israelis have shown a lot of restraint so far and things are relatively calm. there has been no more cross border shelling overnight. israelis are very firm in their resolve and warn of dire consequences of these kinds of attacks continue and in this part of the world. the line between a war of words and a war with real bullets is awfully thin. you are looking at one of the syrian villages where the civil war wages on. machine gun firing today and artillery pounding away on the israeli side. outpost. this is a machine gun pillbox where they can fire out from and concrete trench where soldiers can move around. we already had a couple of mortar rounds land near this position. inside there is the living quarters for soldiers. relatively speaking, this border has been calm for 40 years that certainly now is

beginning to change as the the israeli army is on high alert and ready to reinforce their positions if things on this very very tense border get any worse. [right now the main concern is not an all out war with syria but something going on on the turkish border. tens of thousands of refugees flowing into israel to try to escape the fighting there inside syria. contingency plans being put in place for that, the other is israelis are watching closely for any of the jihadists arming themselves in syria trying to come into israel across the border to launch attacks. back to you. >> shepard: leland vittert live early this tuesday morning in jerusalem. the vice president of iran now warning that nation will break president obama's grasping hand and iran will overcome any economic punishment that the u.s. and its allies can impose. the fist wading coincides with iran's knew air defense system. reportedly modeled after a

system the united states first developed. according to the state run media there. the can lock on to a object 50 miles away and hit 't. with a missile 30 miles. as you may recall the iranians last week admitted that their warplanes shot at u.s. predator zone claiming it was inside iranian airspace. the pentagon however claims the unmanned zone was over international waters and never crossed into iran lawmakers now demanding to know heads up about the former cia director david petraeus. coming up, whether officials are actually obliged to keep or obligated to keep congress in the loop. survivors of hurricane katrina and hurricane isaac look to help hard hit victims of super storm sandy. just ahead, the train of hope from the bioto the northeast. first, the deadly explosion which leveled homes in indianapolis. >> if we there were a minute

and a half longer, we would all been up in flames. >> the blast so loud it woke up people three miles away. >> it looked like a war zone. >> shepard: entire blocks off limits. >> just pray for those families. pray for all of our neighborhood families. >> shepard: now, an investigation and new clues to what caused this. that's coming up as we approach the bottom of the hour and the top of the news. americans are always ready to work hard for a better future. since ameriprise financial was founded back in 1894, they've been committed to putting clients first. helping generations through tough times. good times. never taking a bailout. there when you need them. helping millions of americans over the centuries. the strength of a global financial leader. the heart of a one-to-one relationship. together for your future. ♪ it's the cleanest, clearest water.

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>> shepard: investigators looking at a furnace as the possible cause for explosion that tore through a neighborhood and killed two people. the blaze happened saturday night. massive fire forced 200 people from their homes. it was so loud it woke up people sleeping three miles away. officials will have to demolish 30 homes in the area. a man's who house was at the center of the explosion say it may have started with a furnace that was acting up. a gas company spokeswoman says nobody there reported any faulty furnace. mike tobin in our midwest newsroom now. what else do we know about this furnace? >> the information about the furnace coming from the co-owner of the house. his name is jim shirley. he didn't live at the house. his ex-wife and daughter lived at the house. shir lear says he got a text from his daughter saying the furnace was bad. they were going to a hotel. that's why they weren't home at the time of the blast. that's primarily the information we're getting from him as far as the bad furnace goes. the gas company said they never got a call about a bad

furnace. not only that the gas company says nobody in the neighborhood ever reported smelling gas ahead of this explosion. so there is a lot for investigators to look at, including the fact that the associated press says that shirley home was put on the market, stayed there for a year, didn't sell and taken off the market in march. shep? >> shepard: mike, witnesses say there was no warning at you will a. just all of a sudden a loud bang in the night. >> amazing. no -- people were doing what you would do on a saturday night. suddenly that blast was heard as far as three miles away as you mentioned. people thought a plane had crashed. the neighborhood was reduced to a fireball. the shirley home and the one next to it were reduced to splinters and charred earth. and there was a couple homes sadly in the house next door. husband and wife. they were both killed. that wife her name was jennifer long worth. a second grade teacher. her students said, shep, she was unforgettable. >> shepard: mike tobin live in chicago. mike, thanks. >> you got it. >> shepard: i'm shepard smith. this is the fox report.

it's the bottom of the hour, time for the top top of the news. and lawmakers are now demanding to know why investigators kept them in the dark about the new scandal at the cia. the agency's director general david petraeus stepped down last friday after word broke that he had been sleeping with his biographer paula broadwell. fox news confirms over the summer the fbi notified the attorney general eric holder that general petraeus name had surfaced in an investigation. agents also confronted jen petraeus himself at some point in the last six weeks. now top lawmakers say the fbi should have let them know what was going on before they saw it on the news. catherine herridge top story at the bottom of the hour in washington tonight are they obligated to notify congress? >> that's a great question. former justice department officials and fbi investigators point to title 50 which governs national security and defense issues with section 1413 a dealing with notification. it reads in part, quote: shall keep the congressional

intelligence committees fully and currently informed of all intelligence activities. and in most cases the notification runs from the fbi case agents in the field to their boss fbi director robert muller then to his boss eric holder who knew about the case by the end of the summer. >> the attorney general really, it's his obligation to notify the relevant congressional committees. in some case the attorney general might want to notify the white house or the white house so the white house is not caught off guard by the disclosure. >> the administration stated time line is holder knew about the allegation in august the director of national intelligence, the nation's top intelligence officer first learned about the fbi case two month later on election day at 5:00 p.m. and then within a week it had wrapped one petraeus' resignation, shep. >> all of a sudden petraeus is supposed to be testifying regarding the attack in benghazi, libya. but since is he no longer in the cia, somebody else is going to testify. lawmakers say they want to hear from him anyway. >> that's right. half dozen hearings and

briefings scheduled this week in benghazi. acting cia director mike more relevant is expected to take general petraeus' place. lawmakers say their options are open and they intend to ask petraeus to voluntarily appear as a private citizen or if necessary to use subpoena power on the road. emphasize on the sunday talk shows. >> i don't see how in the world you can find out what happened in benghazi before, during, and after the attack if general petraeus doesn't testify. >> also on the sunday talk shows democratic senator feinstein made it clear her investigation on the intelligence any will look at the lack of notification which means the benghazi scandal can no longer be pigeon holed as simply a republic issue, shep. >> shepard: now we know that when general petraeus was testifying about benghazi, he, himself, was under investigation and he knew it. >> that's an important point. capitol hill source told fox knowing the general was within the scope of an fbi investigation. even if the investigation seemed largely a personal matter, would have changed the

optic which petraeus' actions and statements were viewed. three days after the benghazi attack the general in what is now a controversial briefing told lawmakers that the attack was akin to a flash mob and those in the briefing say he seemed wedded to the administration's view that it was spawned by this anti-islam video. petraeus was described to fox as, quote, absolute in his conclusions when a day earlier the fbi had told some of the same lawmakers that it was al qaeda and there was no mention of a video or that anti-islam pardon me or that demonstration there is a clear disconnect between what the fbi, what the fbi told lawmakers and also what the cia director director told lawmakers, shep. >> shepard: disconnect is a nice word it? >> is a nice word. >> catherine herridge in washington. thank you. >> the homeland security secretary janet napolitano reports she is seeing progress in the rebuilding efforts after super storm sandy. so much damage, over an area the size of europe. the secretary says crews have much more work to do and that will take a lot of time.

16,000 federal employees are now reportedly working in the storm zone in new york and new jersey. housing is said to be their biggest priority. because the storms left tens of thousands essentially homeless. the problem especially bad along the southern coast of new york's staten island. our molly line is there tonight. so many of these homes are -- i mean, they just can't be lived in anymore. >> absolutely. shep. take a look. this is the foundation of one of the homes pulled completely off the ground. and, you know, clearly this is a tough situation. this really shows how powerful the storm surge was. here is the actual home shifted right here, right on the street. we watched people all across the neighborhood working to rebuild, their belongings still inside heir homes. completely doused with salt water. that's the situation here the entire living room still there. the big screen tv. still on the wall. just not a place they can actually live right now there are a lot of folks in shelters. a lot of folks stay with their families and officials here also have housing available. they are hoping to keep the

kids in their local schools. so a lot of thought being put into where these people will be going in the coming days. shep? >> shepard: help was slow coming to staten island are they getting what they need now? >> we talked to a lot of people today that were just absolutely tearing things out of their homes all throughout the day. they had appointments with fema. they had appointments with their insurance adjustors. they said the majority of the help actually came from just individual people stopping by and offering their assistance. just pickup trucks full of people hopping out. walking inside and saying sayint can we do to help you? shep? >> in the aftermath of any storm. anybody stopping by isn't looking to help. >> absolutely. and there has been a lot of that. the gawkers is what they call them. folks that come by just to look at the damage. in the meantime. while that's happening. the san tuition crews are trying to get through. the red cross trying to get through. it's not really appreciated if people want to come down and look, the folks here say they are happy to come down and help take a peek out the

damage is recovering. shep? >> molly line on staten island tonight. victims of the storm getting help from some people who know all the pain all too well. >> having been through the hurricanes ourselves we just knew that we had an instant connection and we want to reach out and help them like some people helped us. >> kimbler -- kim bergeron -- this is her hometown after hurricane katrina. we were there when they got hit again back in august of this year in hurricane isk. she says when people there saw damage from sandy, they knew they had to help. volunteers checked more than five tons of food, clothing, blankets and other supplies, amtrak offered to haul it all the way from new orleans to new york on what organizers dubbed the train of hope. >> they jumped on board so quickly and we were just able to get it together. mobilized our community to start accepting donations and we were overwhelmed by the generosity of the north shore residents.

>> it was wonderful to be on the giving end for a change. >> shepard: i know it was. they coordinated with folks here in the new york, new jersey area. they helped distribute the supplies for people in need. so would you like to help? you certainly can. go to our web site, foxnews.com slash help and ways to help. i should say foxnews.com/help. no, that's not right. it's my name foxnews.com/shep like it says at the bottom of your screen and there you will learn how to help. amid the wreckage on the jersey shore, survivors are finding remnants of other people's lives. one woman has collected hundreds of photographs from piles of trash and litter in union beach, new jersey. some of it is well preserved. others tattered and stained by the flood waters. in an effort to reunite people with their family photos. she started posting them on facebook. a small piece of the past. for people who lost everything. folks who work part time could soon see big changes to their house. coming up, the findings of a new study on the healthcare overhaul. first, there is word the

airlines could soon be running out of pilots to fly their planes. now warnings of fewer flights. and even fewer destinations for the travelers. the pilot shortage coming up. [ "odd couple" theme plays ] humans -- even when we cross our t's and dot our i's, we still run into problems. namely, other humans. which is why, at liberty mutual insurance, auto policies come with new car replacement and accident forgiveness if you qualify. see what else mes standard at libertymutual.com. liberty mutual insurance. responsibility. what's your policy?

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>> shepard: nation's airlines facing what appears to be the first pilot shortage in 50 years according to the "wall street journal" which our parent company owns. journal sites several reasons behind the expected struggle to fill the cockpits including a new rule set to take effect next august it requires new pilots to have 1500 hours of flift experience. that's six times the minimum right now. and all that training is not cheap. keep in mind the average starting salary for a pilot is roughly 20,000 bucks at regional airlines. 36,000 at major airlines. this comes as the industry braces for a waive of retirements. last month the ceo of jetblue airways says the industry is

facing an exodus of talent in the next few years and could wake up one day and find we have no one to operate or maintain those planes. trace gallagher in our west coast news hub with this story. trace, the math really does spell trouble for the airlines and i guess all of us. >> yeah. and the math really is very simple. shep. have you got 100,000 commercial pilots in this country and half of them are over the age of 50. which means in 14 years you are going to need 50,000 new pilots and there simply are not that many young pilots coming in to fill the void. back in 2009, that colgan air crash outside buffalo that killed 50 people we learned after that crash that captain had failed five different flight tests. that's when congress got tough and under the requirements for incoming pilots. today on "studio b" aviation expert mike boyd said congress overreacted. and damaged the industry. listen. >> right now i don't know anyone in their right mind who would become an airline pilot. the pay is terrible. the career path is awful. you know, the labor unions we

work with, the pilots unions they are telling their kids don't become an airline pilot. >> and as you mentioned, these new rules start in august but the f.a.a. is acknowledging that they are revisiting the amount of hours that new pilots may need before they can get hired, shem; pilots say this is overblown. >> sully as you will burger who the captain of the miracle on the hudson says he believes the airline industry is crying wolf as a way to get the f.a.a. to lower those requirements, but he believes if you start lowering the hours needed to get hired that would compromise safety and he believes experience saves lives. listen to him. >> when they go into the right seat, the regional jet as a new hire pilot they are still getting on-the-job training with you as a passenger in the back it means until they have got much more time, probably several thousand hours, they haven't seen that many many many cycles of the seasons of the year. the thunderstorms in summer and the ice and snow in the winter. >> and yeah and sullenberger

adds by the way the airlines knew very well the rule changes were coming and said they would be ready. and now they are about nine months away and suddenly they are not ready. shep? >> shepard: very airline of them. trace gallagher in los angeles. thank you there is word the healthcare overhaul auto could mean fewer hours for part time workers. survey from businesses who use lots of part timers like businesses and hotels. rich edson from fox business network d.c. tonight. it requires companies to cover full-time workers, right? >> right, shep. businesses with at least 50 full-time workers must offer health coverage or at least help pay for insurance. and it says anyone averaging at least 30 hours a week is working full-time. one analyst says you have created a disincentive to hire people. rather than lay people off, they will look for ways to move people from full time to part time. company's report says business would shift schedules to keep workers from hitting full-time status. others would offer workers ask employees to pay more or go

ahead and offer all their workers benefits, shep? >> shepard: which industries predicting they will pay the most. >> when asked if healthcare cost 40% of those in retail or hospitality say yes. 15% of transportation and utilities, a fifth of healthcare companies and about 15% in financial supervisors and manufacturing. now, in response, the administration says this law will redee crease cross, streb our businesses and make it easier for employees to provide coverage for their workers. the provision requiring workers to employers to provide coverage to their workers is 2015. >> shepard: rich edson on capitol hill. thank you. the maker of a widely used flu medication no word it actually works at awesome the drug is tamiflu. you have probably heard of it. prescription medicine governments worldwide have stockpiled in case of a world flew outbreak. they used it. -out the officials at the

centers for disease control and prevention in the u.s. recommend tamiflu two medications for treating regular flu. but researchers linked to the british medical journal b.m.j. say they want the company behind the drug to prove evidence, provide some sort of evidence they can actually stop the virus. the drug maker released a statement saying the company has met all legal requirements and made its data available to national health authorities. the found insects and a bird flying around inside a pharmacy linked to that deadly meningitis outbreak. yes, a bird. it happened in the massachusetts based ameridose pharmacy. a sister company of the firm suspected of shipping contaminated steroid injections to around the country. fungus tainted shots killed 32 people and made more than 400 others sick. officials have not linked that sister company to the outbreak but are concerned over the safety of its products after all bird according to the food

and drug administration's report in addition to the bugs and that live bird near sterile areas, investigators report finding leaky ceilings and cracked walls. they found equipment covered with, quote: think residue that were orange, brown and green. in response, the company today recalled all of its products in circulation and released a statement that reads, in part: ameridose's history shows that we have clearly not had any intanses -- instances of contaminated products over the last six years. voters asked to build a new budget as it emerges from a bankruptcy lasted for years. the critics say putting taxpayer spending to a public vote could be a disaster waiting to happen. reaction from both sides next. plus, experts say the u.s. is vast becoming self-sufficient when it comes to oil and other forms of energy. we will tell you why we might stop relying on other countries entirely as fox reports live tonight.

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>> shepard: the united states could be nearly energy independent in just a couple of decades, that's the word now from a watchdog group the international energy agency. right now the u.s. imports about 20% of energy needs like foreign oil, the report indicates that a spike in domestic production and more efficient use of fuel will mean the u.s. can take care of its own energy needs by the year 2035. the agency has previously reported america is on track to become the world's number one oil producer by the year 2020. that would knock saudi arabia out of the top spot. one of the first u.s. cities to file bankruptcy protection financial crisis is asking voters to prevent it from happening again. vallejo, california is using a new system allowing citizens to decide how to divvy up more

than 3 million tax dollars. of course not everybody is convinced this plan will work. claudia cowan in our san francisco bureau this afternoon. claudia, first of all, where did that all that money come from? >> hi, shepard, it's a percentage of a tax hike vallejo residents passed last year much and now they will decide how that money is spent. brainstorming at public facilities like this years ago. many with own pet projects that need funding from job training programs to youth centers to music festivals. the best ideas will be put to a vote and in may, residents will get to choose which ones get the money. their money to improve their city. >> any other cities. >> it has been tried on a limited basis in parts of chicago and new york city. vallejo is the first to use the concept citywide and this is a port city that declared bankruptcy in 2008 and is just now getting back on its feet. you drive around this city, you see potholes that need

fixing. violent crime suspect. the list goes on. and the mayor who has been a vocal critic of this program says any tax dollars available go toward critical city services and that's it. supporters contend some of the mayor's top priorities might be among the project that get the most votes. he says he hopes so and even he admits that participatory budgeting is getting more people involved by giving them more of a say in how their tax dollars are spent. shep? >> shepard: claudia cowan live in san francisco. if you can't see it, is it there? scientists say they are one step closer to making stuff invisible. of course, there is a catch. researchers at duke university have released this so-called invisibility cloak. they say it reflected electromagnetic waves around a cylinder. slightly larger than your average wristwatch. unfortunately they have yet to manage to shield objects from visible light. only microwaves, the same type of i with as that heat your

food. if you thought you could suddenly be like harry potter just vanish. for now that's still a dream. the interweb is a powerful thing especially when it comes to anything cat-related. ahead how facebook came through for two kids who really want a pet kitty. [ gordon ] for some this line is a convenience. how you doing today? i'm good thanks. how are you? i'm good. [ gordon ] but for others, it's all they can afford. every day nearly nine million older americans don't have enough to eat. anything else? no, not today. join me, aarp, and aarp foundion in the drive to end hunger by visiting drivetoendhunger.org. ii've been a superintendent for 30 some years at many different park service units across the united states. the only time i've ever had a break is when i was on maternity leave.

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>> shepard: all they really wanted was a cat. two kids in massachusetts got their wish using facebook. their father told them he would get them a cat but only if 1,000 people liked their photo on facebook. it went viral and folks clicked the like button 110,000 times. they got their cat from a shelter. before we go, our team's top five things of the day. number 5, national's outfielder brice harper is the national league rookie of the year. number 4 an indiana gas company reports it did not hear about a faulty furnace before a deadly home explosion. number three long island's power authority reports more than 70,000 customers are still without electricity.

number 2, the defense secretary lay on panetta says in a few weeks he hopes to finalize the number of troops set to remain in afghanistan after 2014. and number one, found classified documents on a computer belonging to paula broadwell she is a biographer with whom the cia director david petraeus had an affair. and that's "the fox report's" top five. and on this day in 2001, american airlines flight 587 crashed in queens, new york in what became the second deadliest plane crash in american history. the flight was traveling from jfk to the dominican republic. but right after takeoff it reportedly flew into the jet wash of another plane. the air bus then crashed into a section of houses and exploded. all 260 passengers and crew died as as well as five people n the ground. and because it happened just two months after the attacks of 9/11. many first feared it was terrorism all over again. but there was a tragedy after